Supreme Court

Supreme Court Calls on States to Curb Overpricing in Private Hospitals, Urges Policy Action

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The Supreme Court on 4th of March left it to individual states to formulate policies to protect patients and their attendants from being overcharged and exploited in private hospitals. This decision came in response to a Public Interest Litigation (PIL) that alleged patients were being forced to buy medicines and medical devices at inflated prices from pharmacies operated by private hospitals.

A bench comprising Justices Surya Kant and N Kotiswar Singh emphasized that any mandatory directive from the court could disrupt private hospital operations and lead to unintended consequences. The PIL, filed by law student Siddharth Dalmia and his advocate father Vijay Pal Dalmia, claimed that private hospitals compel patients to purchase medicines from their in-house pharmacies or affiliated vendors, often at significantly higher prices.

In its ruling, the bench stated, “We dispose of this petition with direction to all state governments to consider this issue and take appropriate policy decisions as they deem fit.” Given that healthcare falls under state jurisdiction, the bench highlighted that state governments could implement necessary regulatory measures based on local conditions. The Court further stressed that the matter is one of policy and should be addressed by policymakers, ensuring that patients are not exploited while also preventing unreasonable restrictions on private healthcare providers.

The apex court acknowledged the critical role played by private hospitals in the healthcare sector, both in India and globally.The bench noted that under the Constitution, the state is responsible for providing adequate healthcare services, but given the increasing population, private hospitals play an essential role in meeting public healthcare needs. It reaffirmed that citizens’ right to quality healthcare is protected under Article 21 of the Constitution. The Centre, in its response, stated that there is no legal requirement forcing patients to purchase medicines, implants, or medical equipment exclusively from hospital pharmacies.

The petition sought a directive allowing patients and their attendants the freedom to purchase medicines, medical devices, and implants from vendors of their choice. It also called for a nationwide ban on such restrictive practices, urging the Centre and state governments to safeguard consumer rights and prevent financial exploitation within the healthcare sector.

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